EXHIBIT 99.1

Teck Reports Unaudited First Quarter Results for 2024

Increasing copper production with QB ramp-up and completion of all major construction

VANCOUVER, British Columbia, April 24, 2024 (GLOBE NEWSWIRE) -- Teck Resources Limited (TSX: TECK.A and TECK.B, NYSE: TECK) (Teck) today announced its unaudited first quarter results for 2024.

"All outstanding major construction at our QB operation was completed in the first quarter, including the shiploader and molybdenum plant, and we marked the first shipment of concentrate from the completed port facility," said Jonathan Price, President and CEO. "We had strong first quarter performance across our business, generating $1.7 billion of Adjusted EBITDA1 with steadily increasing quarterly copper production as QB ramp-up advances, and we continued to return cash to shareholders."

Highlights

• Adjusted EBITDA1 of $1.7 billion in Q1 2024 was driven by strong prices for steelmaking coal and copper, partly offset by lower zinc prices and lower steelmaking coal sales volumes. Profit from continuing operations before taxes was $741 million in Q1 2024.
• Adjusted profit from continuing operations attributable to shareholders1 was $392 million, or $0.76 per share, in Q1 2024. Profit from continuing operations attributable to shareholders was $343 million, $0.66 per share, in Q1 2024.
• Our liquidity as at April 24, 2024 is $7.1 billion, including $1.6 billion of cash. Excluding the payment of income taxes of $1.3 billion, primarily related to prior years that was anticipated, we generated cash flows from operations of $1.4 billion in Q1, ending the first quarter with a cash balance of $1.3 billion.
• We returned a total of $145 million to shareholders in the first quarter through the purchase of $80 million of Class B subordinate voting shares pursuant to our normal course issuer bid, and $65 million paid to shareholders as dividends.

• Copper production increased 74% to 99,000 tonnes in the first quarter, with QB producing 43,300 tonnes. QB production was higher than the fourth quarter of 2023, as the operation continues to ramp-up. Average copper prices were US$3.83 per pound in the first quarter and following quarter end, spot copper prices reached two year highs, trading in excess of US$4.40 per pound.
• At QB, construction was completed and demobilization of the construction workforce was substantially advanced by the end of the quarter. We successfully loaded our first vessel using the shiploader, and the molybdenum plant will be ramped-up in the second quarter of 2024.
• Zinc in concentrate production increased by 10% to 159,800 tonnes in the first quarter, and sales from Red Dog of 84,600 tonnes were within our previously disclosed guidance.
• Our steelmaking coal business unit generated $1.4 billion in gross profit before depreciation and amortization1 in Q1, with sales volumes of 5.9 million tonnes and an average realized steelmaking coal price of US$297 per tonne.
• We closed the sale of the 20% minority interest in Elk Valley Resources (EVR), our steelmaking coal business, to Nippon Steel Corporation (NSC) on January 3, 2024, with NSC exchanging its 2.5% interest in Elkview Operations, paying US$1.3 billion in cash on closing, plus US$0.4 billion to be paid to Teck from EVR cash flows. Also, on January 3, 2024, POSCO exchanged its 2.5% interest in Elkview Operations and its 20% interest in the Greenhills joint venture for a 3% interest in EVR.

Note:

Financial Summary Q1 2024

Note:

Key Updates

Executing on our Copper Growth Strategy

• Construction of QB was completed and demobilization of contractors was substantially advanced at the end of the quarter.
• We successfully loaded our first vessel of QB concentrate using the shiploader, and the molybdenum plant will be ramped-up in the second quarter of 2024.
• Our QB2 project capital cost guidance is unchanged at US$8.6-$8.8 billion.
• Copper production at QB was 43,300 tonnes during the first quarter, an increase from the fourth quarter as ramp-up continues. Our previously disclosed annual production and unit cost guidance for QB is unchanged.
• We continued to advance our industry-leading copper growth portfolio, with a focus on completing feasibility studies, advancing detailed engineering work, project execution planning and progressing permitting, particularly at the HVC Mine Life Extension, San Nicolás and Zafranal.

Safety and Sustainability Leadership

• Our High-Potential Incident Frequency rate was 0.06 in the first quarter, lower than the same period in 2023.
• We released our 23rd annual Sustainability Report, outlining Teck’s 2023 sustainability performance, including progress in areas such as decarbonization, diversity and working towards a nature positive future.

Guidance

• There has been no change to our previously disclosed guidance. Our guidance is outlined in summary below and our usual guidance tables, including three-year production guidance, can be found on pages 25 - 29 of Teck’s first quarter results for 2024 at the link below.

Note:

Click here to view Teck’s full first quarter results for 2024.

WEBCAST

Teck will host an Investor Conference Call to discuss its Q1/2024 financial results at 11:00 AM Eastern time, 8:00 AM Pacific time, on April 25, 2024. A live audio webcast of the conference call, together with supporting presentation slides, will be available at our website at www.teck.com. The webcast will be archived at www.teck.com.

Reference:

Fraser Phillips, Senior Vice President, Investor Relations and Strategic Analysis: 604.699.4621

Chris Stannell, Public Relations Manager: 604.699.4368 

USE OF NON-GAAP FINANCIAL MEASURES AND RATIOS

Our annual financial statements are prepared in accordance with IFRS® Accounting Standards as issued by the International Accounting Standards Board (IASB). Our interim financial results are prepared in accordance with IAS 34, Interim Financial Reporting (IAS 34). This document refers to a number of non-GAAP financial measures and non-GAAP ratios, which are not measures recognized under IFRS Accounting Standards and do not have a standardized meaning prescribed by IFRS Accounting Standards or by Generally Accepted Accounting Principles (GAAP) in the United States.

The non-GAAP financial measures and non-GAAP ratios described below do not have standardized meanings under IFRS Accounting Standards, may differ from those used by other issuers, and may not be comparable to similar financial measures and ratios reported by other issuers. These financial measures and ratios have been derived from our financial statements and applied on a consistent basis as appropriate. We disclose these financial measures and ratios because we believe they assist readers in understanding the results of our operations and financial position and provide further information about our financial results to investors. These measures should not be considered in isolation or used as a substitute for other measures of performance prepared in accordance with IFRS Accounting Standards.

Adjusted profit from continuing operations attributable to shareholders – For adjusted profit from continuing operations attributable to shareholders, we adjust profit from continuing operations attributable to shareholders as reported to remove the after-tax effect of certain types of transactions that reflect measurement changes on our balance sheet or are not indicative of our normal operating activities.

EBITDA – EBITDA is profit before net finance expense, provision for income taxes, and depreciation and amortization.

Adjusted EBITDA – Adjusted EBITDA is EBITDA before the pre-tax effect of the adjustments that we make to adjusted profit from continuing operations attributable to shareholders as described above.

Adjusted profit from continuing operations attributable to shareholders, EBITDA and Adjusted EBITDA highlight items and allow us and readers to analyze the rest of our results more clearly. We believe that disclosing these measures assists readers in understanding the ongoing cash-generating potential of our business in order to provide liquidity to fund working capital needs, service outstanding debt, fund future capital expenditures and investment opportunities, and pay dividends.

Adjusted basic earnings per share from continuing operations – Adjusted basic earnings per share from continuing operations is adjusted profit from continuing operations attributable to shareholders divided by average number of shares outstanding in the period.

Adjusted diluted earnings per share from continuing operations – Adjusted diluted earnings per share from continuing operations is adjusted profit from continuing operations attributable to shareholders divided by average number of fully diluted shares in a period.

Gross profit before depreciation and amortization – Gross profit before depreciation and amortization is gross profit with depreciation and amortization expense added back. We believe this measure assists us and readers to assess our ability to generate cash flow from our business units or operations.

Unit costs – Unit costs for our steelmaking coal operations are total cost of goods sold, divided by tonnes sold in the period, excluding depreciation and amortization charges. We include this information as it is frequently requested by investors and investment analysts who use it to assess our cost structure and margins and compare it to similar information provided by many companies in the industry.

Adjusted site cash cost of sales – Adjusted site cash cost of sales for our steelmaking coal operations is defined as the cost of the product as it leaves the mine excluding depreciation and amortization charges, outbound transportation costs and any one-time collective agreement charges and inventory write-down provisions.

Total cash unit costs – Total cash unit costs for our copper and zinc operations includes adjusted cash costs of sales, as described below, plus the smelter and refining charges added back in determining adjusted revenue. This presentation allows a comparison of total cash unit costs, including smelter charges, to the underlying price of copper or zinc in order to assess the margin for the mine on a per unit basis.

Net cash unit costs – Net cash unit costs of principal product, after deducting co-product and by-product margins, are also a common industry measure. By deducting the co- and by-product margin per unit of the principal product, the margin for the mine on a per unit basis may be presented in a single metric for comparison to other operations.

Adjusted cash cost of sales – Adjusted cash cost of sales for our copper and zinc operations is defined as the cost of the product delivered to the port of shipment, excluding depreciation and amortization charges, any one-time collective agreement charges or inventory write-down provisions and by-product cost of sales. It is common practice in the industry to exclude depreciation and amortization, as these costs are non-cash, and discounted cash flow valuation models used in the industry substitute expectations of future capital spending for these amounts.

Adjusted site cash cost of sales per tonne – Adjusted site cash cost of sales per tonne is a non-GAAP ratio comprised of adjusted site cash cost of sales divided by tonnes sold. There is no similar financial measure in our consolidated financial statements with which to compare.

Profit from Continuing Operations Attributable to Shareholders and Adjusted Profit from Continuing Operations Attributable to Shareholders

Reconciliation of Basic Earnings per share from Continuing Operations to Adjusted Basic Earnings per share from Continuing Operations

Reconciliation of Diluted Earnings per share from Continuing Operations to Adjusted Diluted Earnings per share from Continuing Operations

Reconciliation of EBITDA and Adjusted EBITDA

Reconciliation of Gross Profit Before Depreciation and Amortization

CAUTIONARY STATEMENT ON FORWARD-LOOKING STATEMENTS

This news release contains certain forward-looking information and forward-looking statements as defined in applicable securities laws (collectively referred to as forward-looking statements). These statements relate to future events or our future performance. All statements other than statements of historical fact are forward-looking statements. The use of any of the words “anticipate”, “plan”, “continue”, “estimate”, “expect”, “may”, “will”, “project”, “predict”, “potential”, “should”, “believe” and similar expressions is intended to identify forward-looking statements. These statements involve known and unknown risks, uncertainties and other factors that may cause actual results or events to differ materially from those anticipated in such forward-looking statements. These statements speak only as of the date of this news release.

These forward-looking statements include, but are not limited to, statements concerning: our focus and strategy; anticipated global and regional supply, demand and market outlook for our commodities; execution of the planned separation of Teck’s base metals and steelmaking coal businesses, including the ability to satisfy the closing conditions and expected timing of the closing of the Glencore transaction; our expectations regarding the ramp-up of the QB2 project, including the molybdenum plant and port facilities, and our ability to increase production each quarter in 2024; QB2 capital cost guidance and expectations for capitalized ramp-up costs; expectations regarding inflationary pressures and our ability to manage controllable operating expenditures; expectations regarding future remediation costs at our operations and closed operations; timing of and our ability to implement a solution related to water restrictions at Carmen de Andacollo operations; expectations with respect to execution of our copper growth strategy, including the timing and occurrence of any sanction decisions and prioritization of growth capital; expectations regarding permitting strategies and debottlenecking opportunities at our QB Operations; expectations regarding advancement of copper growth portfolio, including advancement of study, permitting, execution planning, and engineering work, community and Indigenous engagement, and completion of updated cost estimates at our San Nicolás, Zafranal, HVC Mine Life Extension, QB Asset Expansion, and Galore Creek projects, as applicable; our ability to implement the Elk Valley Water Quality Plan and other water quality initiatives; expectations for stabilization and reduction of the selenium trend in the Elk Valley; expectations for total water treatment capacity; and further reductions of selenium in the Elk Valley watershed and the Koocanusa Reservoir; projected spending, including capital and operating costs in 2024 and later years on water treatment, water management and incremental measures associated with the Direction; timing of advancement and completion of key water treatment projects; our expectation that we will increase our water treatment capacity to 150 million litres per day by the end of 2026; expectations regarding engagement with U.S. regulators on water quality standards; expectations regarding finance and general and administration expenses in 2024; expectations regarding timing and amount of income tax payments and our effective tax rate; liquidity and availability of borrowings under our credit facilities; our ability to obtain additional credit for posting security for reclamation at our sites; all guidance appearing in this document including but not limited to the production, sales, cost, unit cost, capital expenditure, capitalized stripping, and other guidance under the headings “Guidance” and "Outlook" and as discussed elsewhere in the various business unit sections; our expectations regarding inflationary pressures and increased key input costs; and expectations regarding the adoption of new accounting standards and the impact of new accounting developments.

These statements are based on a number of assumptions, including, but not limited to, assumptions disclosed elsewhere in this document and assumptions regarding general business and economic conditions, interest rates, commodity and power prices; acts of foreign or domestic governments and the outcome of legal proceedings; our ability to satisfy the closing conditions of the Glencore transaction; the supply and demand for, deliveries of, and the level and volatility of prices of copper, zinc and steelmaking coal and our other metals and minerals, as well as steel, crude oil, natural gas and other petroleum products; the timing of the receipt of permits and other regulatory and governmental approvals for our development projects and other operations, including mine extensions; positive results from the studies on our expansion and development projects; our ability to secure adequate transportation, including rail and port services, for our products; our costs of production and our production and productivity levels, as well as those of our competitors; continuing availability of water and power resources for our operations; changes in credit market conditions and conditions in financial markets generally; the availability of funding to refinance our borrowings as they become due or to finance our development projects on reasonable terms; availability of letters of credit and other forms of financial assurance acceptable to regulators for reclamation and other bonding requirements; our ability to procure equipment and operating supplies in sufficient quantities and on a timely basis; the availability of qualified employees and contractors for our operations, including our new developments and our ability to attract and retain skilled employees; the satisfactory negotiation of collective agreements with unionized employees; the impact of changes in Canadian-U.S. dollar, Canadian dollar-Chilean Peso and other foreign exchange rates on our costs and results; engineering and construction timetables and capital costs for our development and expansion projects; our ability to develop technology and obtain the benefits of technology for our operations and development projects; closure costs; environmental compliance costs; market competition; the accuracy of our mineral reserve and resource estimates (including with respect to size, grade and recoverability) and the geological, operational and price assumptions on which these are based; tax benefits and tax rates; the outcome of our coal price and volume negotiations with customers; the outcome of our copper, zinc and lead concentrate treatment and refining charge negotiations with customers; the resolution of environmental and other proceedings or disputes; our ability to obtain, comply with and renew permits, licenses and leases in a timely manner; and our ongoing relations with our employees and with our business and joint venture partners.

In addition, assumptions regarding the Elk Valley Water Quality Plan include assumptions that additional treatment will be effective at scale, and that the technology and facilities operate as expected, as well as additional assumptions discussed under the heading “Elk Valley Water Management Update.” Assumptions regarding QB2 include current project assumptions and assumptions regarding the final feasibility study, estimates of the final capital cost at QB2 are based on a CLP/USD rate range of 800 — 850, as well as there being no further unexpected material and negative impact to the various contractors, suppliers and subcontractors that would impair their ability to provide goods and services as anticipated during ramp-up activities or delay demobilization in accordance with current expectations. Statements regarding the availability of our credit facilities are based on assumptions that we will be able to satisfy the conditions for borrowing at the time of a borrowing request and that the facilities are not otherwise terminated or accelerated due to an event of default. Assumptions regarding the costs and benefits of our projects include assumptions that the relevant project is constructed, commissioned and operated in accordance with current expectations. Expectations regarding our operations are based on numerous assumptions regarding the operations. Our Guidance tables include disclosure and footnotes with further assumptions relating to our guidance, and assumptions for certain other forward-looking statements accompany those statements within the document. Statements concerning future production costs or volumes are based on numerous assumptions regarding operating matters and on assumptions that demand for products develops as anticipated, that customers and other counterparties perform their contractual obligations, that operating and capital plans will not be disrupted by issues such as mechanical failure, unavailability of parts and supplies, labour disturbances, interruption in transportation or utilities, or adverse weather conditions, and that there are no material unanticipated variations in the cost of energy or supplies. Statements regarding anticipated steelmaking coal sales volumes and average steelmaking coal prices depend on timely arrival of vessels and performance of our steelmaking coal-loading facilities, as well as the level of spot pricing sales. The foregoing list of assumptions is not exhaustive. Events or circumstances could cause actual results to vary materially. 

Factors that may cause actual results to vary materially include, but are not limited to, changes in commodity and power prices; changes in market demand for our products; changes in interest and currency exchange rates; acts of governments and the outcome of legal proceedings; inaccurate geological and metallurgical assumptions (including with respect to the size, grade and recoverability of mineral reserves and resources); operational difficulties (including failure of plant, equipment or processes to operate in accordance with specifications or expectations, cost escalation, unavailability of labour, materials and equipment, government action or delays in the receipt of government approvals, changes in royalty or tax rates, industrial disturbances or other job action, adverse weather conditions and unanticipated events related to health, safety and environmental matters); union labour disputes; any resurgence of COVID-19 and related mitigation protocols; political risk; social unrest; failure of customers or counterparties (including logistics suppliers) to perform their contractual obligations; changes in our credit ratings; unanticipated increases in costs to construct our development projects; difficulty in obtaining permits; inability to address concerns regarding permits or environmental impact assessments; and changes or further deterioration in general economic conditions. The amount and timing of capital expenditures is depending upon, among other matters, being able to secure permits, equipment, supplies, materials and labour on a timely basis and at expected costs. Certain operations and projects are not controlled by us; schedules and costs may be adjusted by our partners, and timing of spending and operation of the operation or project is not in our control. Certain of our other operations and projects are operated through joint arrangements where we may not have control over all decisions, which may cause outcomes to differ from current expectations. Current and new technologies relating to our Elk Valley water treatment efforts may not perform as anticipated, and ongoing monitoring may reveal unexpected environmental conditions requiring additional remedial measures. QB2 costs, commissioning and commercial production are dependent on, among other matters, our continued ability to advance commissioning and ramp-up as currently anticipated. QB2 costs may also be affected by claims and other proceedings that might be brought against us relating to costs and impacts of the COVID-19 pandemic or otherwise. Production at our Red Dog Operations may also be impacted by water levels at site. Sales to China may be impacted by general and specific port restrictions, Chinese regulation and policies, and normal production and operating risks. The forward-looking statements in this news release and actual results will also be impacted by the continuing effects of COVID-19 and related matters, particularly if there is a further resurgence of the virus.

We assume no obligation to update forward-looking statements except as required under securities laws. Further information concerning risks, assumptions and uncertainties associated with these forward-looking statements and our business can be found in our Annual Information Form for the year ended December 31, 2023 filed under our profile on SEDAR+ (www.sedarplus.ca) and on EDGAR (www.sec.gov) under cover of Form 40-F, as well as subsequent filings that can also be found under our profile.

Scientific and technical information in this quarterly report regarding our coal properties, which for this purpose does not include the discussion under “Elk Valley Water Management Update” was reviewed, approved and verified by Jo-Anna Singleton, P.Geo. and Cameron Feltin, P.Eng., each an employee of Teck Coal Limited and a Qualified Person as defined under National Instrument 43-101. Scientific and technical information in this quarterly report regarding our other properties was reviewed, approved and verified by Rodrigo Alves Marinho, P.Geo., an employee of Teck and a Qualified Person as defined under National Instrument 43-101.

EXHIBIT 99.2

Teck Reports Unaudited First Quarter Results for 2024

Increasing copper production with QB ramp-up and completion of all major construction

Vancouver, B.C. – Teck Resources Limited (TSX: TECK.A and TECK.B, NYSE: TECK) (Teck) today announced its unaudited first quarter results for 2024.

"All outstanding major construction at our QB operation was completed in the first quarter, including the shiploader and molybdenum plant, and we marked the first shipment of concentrate from the completed port facility," said Jonathan Price, President and CEO. "We had strong first quarter performance across our business, generating $1.7 billion of Adjusted EBITDA1 with steadily increasing quarterly copper production as QB ramp-up advances, and we continued to return cash to shareholders."

Highlights

Note:

All dollar amounts expressed in this news release are in Canadian dollars unless otherwise noted.

Additional corporate information is available at www.teck.com.

Financial Summary Q1 2024

Note:

Key Updates

Executing on Our Copper Growth Strategy

Safety and Sustainability Leadership

Guidance

Note:

Management's Discussion and Analysis

This management's discussion and analysis is dated as at April 24, 2024 and should be read in conjunction with the unaudited condensed interim consolidated financial statements of Teck Resources Limited (Teck) and the notes thereto for the three months ended March 31, 2024 and with the audited consolidated financial statements of Teck and the notes thereto for the year ended December 31, 2023. In this news release, unless the context otherwise dictates, a reference to “the company” or “us,” “we” or “our” refers to Teck and its subsidiaries. Additional information, including our Annual Information Form and Management’s Discussion and Analysis for the year ended December 31, 2023, is available on SEDAR+ at www.sedarplus.ca.

This document contains forward-looking statements and forward-looking information. Please refer to the cautionary language under the heading “CAUTIONARY STATEMENT ON FORWARD-LOOKING STATEMENTS” below.

Overview

Profit from Continuing Operations Attributable to Shareholders and Adjusted Profit from Continuing Operations Attributable to Shareholders

Our profit from continuing operations attributable to shareholders in the first quarter of 2024 includes our 77% ownership interest of our steelmaking coal business EVR, as outlined above.

In the first quarter, profit from continuing operations attributable to shareholders was $343 million, or $0.66 per share, compared to $1.2 billion, or $2.27 per share, in the same period last year, as outlined above.

Adjusted profit from continuing operations attributable to shareholders1 in the first quarter, taking into account the items identified in the table below, was $392 million, or $0.76 per share, compared with $930 million, or $1.81 per share, in the first quarter of 2023. Significant first quarter adjustments to profit, reflected in the table below, include $27 million of share-based-compensation costs and $19 million of inventory write-downs.

In addition to the items identified in the table above, our results include gains and losses due to changes in market prices in respect of pricing adjustments. Pricing adjustments resulted in $52 million of after-tax losses ($83 million, before tax) in the first quarter, or $0.10 per share.

Notes:

BUSINESS UNIT RESULTS

Our revenue, gross profit, and gross profit before depreciation and amortization1 by business unit are summarized in the table below.

COPPER BUSINESS UNIT

Performance

Gross profit from our copper business unit decreased to $106 million in the first quarter compared with $261 million a year ago (see table below). The decline in gross profit was due to lower copper prices, reduced zinc by-product revenues from Antamina and a loss incurred at QB, as we are progressing ramp-up of production and have now commenced depreciation of the operating assets.

Copper production of 99,000 tonnes was achieved in the first quarter, which was 74% higher than a year ago. The increase was driven by the ramp-up of QB, with the operation contributing production of 43,300 tonnes of copper in concentrate during the quarter, as well as higher production from Antamina, slightly offset by lower production at Carmen de Andacollo due to the impacts of continued extreme drought conditions.

The table below summarizes the change in gross profit in our copper business unit for the quarter.

Property, plant and equipment expenditures in the first quarter totalled $588 million, including $97 million for sustaining capital, and $414 million for project development expenditures for QB2.

Capitalized stripping costs were $82 million in the first quarter compared with $95 million a year ago.

Markets

In the first quarter, average London Metal Exchange (LME) copper prices were 5% lower than the same period a year ago. However, prices rose through the quarter and ended the first quarter just above US$4.00 per pound. Following quarter end, spot copper prices rallied further reaching two year highs, trading in excess of US$4.40 per pound, attributable to continued global mine disruptions and increased demand. Global demand in 2024 is expected to remain strong. Demand in Europe is slowly recovering as a result of lower energy costs, and lower imports in the first quarter should support stock recovery through the remainder of the year. Demand in China remains supportive, particularly in the energy transition and export sectors. In India, demand is expected to be stronger in the second half of the year, following the general election. Southeast Asian and North American demand continue to be driven by government and corporate spending on renewable energy, electrical infrastructure, construction and the potential for additional demand from data centres.

The tightness in the copper concentrate market accelerated through the first quarter, with smelter spot terms falling to historic lows. Terms for treating concentrates started to fall last year as new smelter capacity came online and mine production fell below expectations. Global primary copper mine production in 2024 is forecasted to see the first significant decline since 2002. Smelter expansions and start-ups are expected to continue through the second half of 2024 and into 2025 to meet the expected long-term energy transition and traditional copper demand growth. Concentrate imports into China so far in 2024 remain flat after the 9% increase seen in 2023. Global stocks of copper cathode on exchanges at the end of the first quarter were 5.9 days of global consumption compared to the long-term average of 11 days. Stocks on exchanges and in bonded warehouses in China rose by 308,000 tonnes in the first quarter, the second-lowest seasonal stock build in the last decade. Total global visible stocks, including bonded stocks, continue to remain at low levels at 6.8 days of consumption, compared to a long-term average of 14.5 days.

Operations

Quebrada Blanca

The following are the key updates relating to operational performance and construction at QB in the first quarter:

Highland Valley Copper

Copper production of 25,400 tonnes in the first quarter was 900 tonnes higher than a year ago due to improved mill throughput and higher copper grades. Copper sales volumes of 26,500 tonnes in the first quarter were similar to a year ago.

Operating costs in the first quarter of $196 million, before changes in inventory, were $9 million higher than a year ago, driven by higher mill throughput and inflation on the cost of consumables, as expected.

Antamina

Copper production (100% basis) of 104,100 tonnes in the first quarter was 13,000 tonnes higher than a year ago due to increased copper-only ore being treated, as expected in the mine plan, and higher mill recoveries. The mix of mill feed in the quarter was 67% copper-only ore and 33% copper-zinc ore, compared with 50% copper-only ore and 50% copper-zinc ore a year ago. As a result, zinc production (100% basis) of 64,700 tonnes in the first quarter was 18,600 tonnes lower than a year ago.

Operating costs in the first quarter, before changes in inventory, were US$88 million (22.5% share) and similar to a year ago.

In 2022, Antamina submitted a MEIA (Modification of Environmental Impact Assessment) to Peruvian regulators to extend its mine life from 2028 to 2036. Approval of the MEIA was received on February 14, 2024. Teck's share of the capital cost is expected to be US$450 million and will be spread over eight years.

Carmen de Andacollo

Copper production of 6,900 tonnes in the first quarter was 3,000 tonnes lower than a year ago. The decrease is due to lower tonnes milled as a result of continued water restrictions caused by extreme drought conditions. We continue to assess steps that can be taken in order to mitigate these water restriction risks, with a solution expected to be in place in 2025.

Operating costs in the first quarter of US$57 million, before changes in inventory, decreased by US$10 million from a year ago as a result of the lower production levels and targeted cost reductions in labour and contractors.

Cost of Sales

Cost of sales was $972 million in the first quarter compared with $502 million in the same period last year, with $459 million of the increase relating to QB, which continues to ramp-up operations. In the first quarter, we commenced depreciation of operating assets at QB and recorded $125 million of depreciation and amortization expense in cost of sales.

Excluding QB, total cash unit costs1 in the first quarter were US$2.25 per pound compared to US$2.30 per pound a year ago, primarily as a result of lower smelter processing charges. Including QB, total cash unit costs1 in the first quarter were US$2.58 per pound, compared with US$2.30 per pound a year ago, as a result of elevated operating costs at QB during ramp-up of production.

Excluding QB, net cash unit costs1 in the first quarter were US$1.92 per pound, US$0.09 per pound higher than a year ago as a result of reduced zinc by-product revenue credits from Antamina. Including QB, net cash unit costs1 for the first quarter were US$2.36 per pound, US$0.53 per pound higher than the same period a year ago. Our previously disclosed 2024 annual copper net cash unit cost guidance of US$1.85–$2.25 per pound is unchanged.

QB total and net cash unit costs1 are expected to be higher in the first half of 2024,consistent with our previously disclosed guidance, as we ramp-up production, utilize alternative shipping arrangements and ramp-up the molybdenum plant. Our previously disclosed 2024 net cash unit cost guidance for QB of US$1.95–$2.25 per pound is unchanged.

The table below presents our copper unit costs, including QB operations in 2024, and excludes QB in 2023 due to the construction and subsequent ramp-up phase.

Outlook

Our 2024 annual guidance for our copper business unit is outlined in our guidance tables on pages 25–29 and is unchanged from our previously disclosed guidance.

Copper Growth

In the first quarter, we continued to advance our copper growth strategy with investments in our industry-leading copper growth portfolio. Our copper growth strategy balances growth and return of capital to shareholders with maintaining a strong balance sheet, and is informed by milestone objectives with prudent investment plans across the entire portfolio to de-risk development of each of the assets, including permitting. As previously disclosed, we do not expect to sanction any growth projects in 2024 and we are focused on advancing near-term projects for possible sanctioning in 2025. Growth projects are required to deliver an attractive risk-adjusted return and will compete for capital in line with Teck’s capital allocation framework.

Growth capital in 2024, excluding QB2 development capital, is prioritized on our copper growth projects as we focus on completing feasibility studies, advancing detailed engineering work, project execution planning and progressing permitting, particularly at the HVC Mine Life Extension, San Nicolás and Zafranal. In addition, we will work to define the most capital-efficient and value-adding pathway for the expansion of QB, based on the performance of the existing asset base and on permitting requirements. We also expect to continue to progress our medium- to long-term portfolio options with investments to advance the path to value. Further project updates for the first quarter of 2024 are as follows:

Targeted upcoming milestones for key assets in our copper growth portfolio include:

ZINC BUSINESS UNIT

Performance

Gross profit from our zinc business unit decreased to $63 million in the first quarter from $128 million a year ago (see table below) primarily due to significantly lower zinc prices, which declined 22% from a year ago, and lower contracted zinc premiums on refined zinc at Trail Operations. This was partially offset by lower NANA royalty expense in the period, which is tied to the profitability of Red Dog.

Red Dog's zinc production in the first quarter increased by 15% from a year ago to 145,300 tonnes, while lead production increased by 10% to 25,400 tonnes, both of which were driven by higher mill throughput due to improved online time and mill rates. At our Trail Operations, production volumes of refined zinc and lead improved slightly from a year ago, although both quarters were impacted by severe weather events.

The table below summarizes the change in gross profit in our zinc business unit for the quarter.

Property, plant and equipment expenditures in the first quarter totalled $33 million, including $28 million for sustaining capital, of which $18 million relates to our Trail Operations and $10 million relates to our Red Dog Operations.

Markets

The refined zinc market remained under pressure through the first quarter, with prices falling to their lowest levels since August 2023. Prices for zinc on the LME in the first quarter averaged US$1.11 per pound, a decline of 22% from the same quarter a year ago.

LME zinc stocks rose by 46,000 tonnes in the first quarter and are up over extremely low levels at the end of the first quarter last year. Total global exchange stocks remained well below historical levels, ending the first quarter at 10.4 days of global consumption, compared to the 25-year average of 17.2 days. We estimate that total reported global stocks rose by 146,500 tonnes in the first quarter to 400,000 tonnes.

Zinc premiums have softened across all regions and are down an average of 20% over the previous quarter, but remain above historical averages. Demand in Europe is starting to improve despite weak construction numbers, with improved demand from energy transition and automotive sales, and production continuing to provide support. In North America, automotive sales and production remained supportive into the first quarter, with expectations of lower growth in 2024. Improved growth in construction, continued spend on infrastructure, and onshoring of manufacturing should support metals demand in North America in 2024. In Asia, Chinese imports of zinc metal are improving, with imports up 340% over a weak first half in 2023; however, metal imports remain below historical levels. Chinese demand for zinc in autos and renewable energy remains well supported.

The zinc concentrate market continued to tighten, with spot treatment charges continuing to fall in the first quarter as mine production continued to underperform due to low prices, production disruptions and weather-related incidents. Imports of zinc concentrates into China have slowed in the first quarter after posting a record year in 2023. Availability of raw materials remains a concern heading into the remainder of the year as new smelter capacity continues to come online in 2024.

Operations

Red Dog

Zinc production increased to 145,300 tonnes in the first quarter compared with 126,200 tonnes a year ago. Lead production of 25,400 tonnes in the first quarter was 2,300 tonnes higher than a year ago. The higher production of zinc and lead was driven by increased mill throughput, as extreme weather had constrained mill throughput in the first quarter last year.

Zinc sales volumes of 84,600 tonnes in the first quarter were within our previously disclosed guidance, but 5% lower than a year ago due to the timing of shipments.

Operating costs, before inventory changes, in the first quarter were US$114 million, or US$10 million higher than a year ago. The higher costs were primarily driven by increased mill throughput as well as inflation on the cost of consumables, as expected.

Trail Operations

Refined zinc production of 63,500 tonnes in the first quarter was 1,900 tonnes higher than a year ago. Lead production was 16,500 tonnes in the first quarter and 500 tonnes higher than a year ago. Production in both quarters was impacted by severe weather events.

Work on the KIVCET boiler replacement is progressing well and is expected to be completed by the end of the second quarter. As previously disclosed, this replacement will require a complete shutdown of the lead circuit, but will have minimal impact on the zinc circuit.

Operating costs, before changes in inventory, in the first quarter were $3 million higher than a year ago at $149 million, primarily due to higher production and inflation on the cost of consumables.

Cost of Sales

Cost of sales of $478 million in the first quarter was similar with $488 million a year ago.

Total cash unit costs1 for Red Dog were US$0.68 per pound in the first quarter, consistent with a year ago. Net cash unit costs1 of US$0.67 per pound in the first quarter were US$0.02 per pound lower than a year ago.

Outlook

Our 2024 annual guidance for our zinc business unit is outlined in our guidance tables on pages 25–29 and is unchanged from our previously issued guidance.

We expect sales of zinc in concentrate from Red Dog to be in the range of 50,000 to 60,000 tonnes in the second quarter of 2024, reflecting the normal seasonal pattern of Red Dog sales.

STEELMAKING COAL BUSINESS UNIT (EVR)

Performance

Gross profit in the first quarter from our steelmaking coal business unit was $1.1 billion compared with $1.3 billion a year ago. The decrease was due to higher unit operating costs and lower sales volumes, partially offset by higher realized steelmaking coal prices (see table below).

First quarter sales volumes of 5.9 million tonnes were within our previously disclosed guidance of 5.9–6.3 million tonnes. Sales volumes in the first quarter were lower than a year ago due to extreme cold weather in January that resulted in production challenges, as well as rail impacts in the first two months of the year.

The table below summarizes the change in gross profit in our steelmaking coal business unit for the quarter.

Property, plant and equipment expenditures were $158 million in the first quarter, which included $24 million associated with water projects. Capitalized stripping costs were $214 million in the first quarter, similar to $202 million in the same period last year.

The FOB Australia price assessments for the first quarter of 2024, lagged by one month, averaged US$325 per tonne. This was in line with pricing in the fourth quarter of 2023 and slightly higher than US$315 per tonne in the first quarter of 2023. Steelmaking coal prices remained above US$300 per tonne through much of the first quarter as a result of continued supply constraints from Australia combined with strong demand from India. As supply began to improve in early March, steelmaking coal prices declined and stabilized at US$245 per tonne at the end of the first quarter.

The CFR China price assessments for the first quarter averaged US$310 per tonne compared to US$309 per tonne in the fourth quarter of 2023 and US$328 per tonne in the first quarter of 2023. Similar to FOB Australia prices, CFR China prices started to fall in March and ended the first quarter at just above US$260 per tonne. The average blast furnace utilization in China has been lower in 2024 as compared to 2023, but similar to the 84.5% average of 2022. As of late March, capacity utilization was 83%.

Operations

First quarter steelmaking coal production of 6.0 million tonnes was the same as the first quarter last year. The strong production pace that continued from the end of the fourth quarter in 2023 was impacted by the extreme freezing event in January, which resulted in frozen plant components and unplanned downtime.

Total material movement in the first quarter was 9% lower than the same period a year ago, primarily due to significant weather events that impacted road conditions and reduced visibility, causing lower truck productivity and increased standby time.

Cost of Sales

Cost of sales was $1.2 billion in the first quarter compared to $1.1 billion in the same period last year. Adjusted site cash cost of sales1 of $112 per tonne, increased from $89 per tonne a year ago, driven by higher repair parts and maintenance spend, largely due to equipment failures, and higher contractor reliance that is partially due to the continued shortage of skilled trade labour. In addition, the weather-related productivity impacts noted above were also a factor, combined with less favourable mining drivers than the same period last year. Despite elevated first quarter adjusted site cash cost of sales, we continue to expect our 2024 annual adjusted site cash cost of sales to be within our previously disclosed guidance range of $95–$110 per tonne.

Transportation unit costs in the first quarter of $48 per tonne were $2 per tonne lower than the first quarter last year and within our previously disclosed annual 2024 transportation unit cost guidance. The decrease in transportation unit costs compared to the same period last year was largely attributable to reduced demurrage charges, driven by a reduction in the vessel queue.

The tables below report the components of our unit costs in Canadian and equivalent U.S. dollars.

Our total cost of sales for the first quarter also included a $19 per tonne charge for the amortization of capitalized stripping costs and $32 per tonne for other depreciation.

Outlook

Our 2024 annual guidance for our steelmaking coal business unit is outlined in our guidance tables on pages 25–29 and is unchanged from previously issued guidance.

We expect steelmaking coal sales in the second quarter to be between 6.0 and 6.4 million tonnes, as we plan to conduct planned maintenance shutdowns at two of our operations.

Elk Valley Water Management Update

We continue to implement the water quality management measures required by the Elk Valley Water Quality Plan (the Plan). The Plan establishes short-, medium- and long-term water quality targets for selenium, nitrate, sulphate and cadmium to protect the environment and human health.

Our 77.5 million litres per day of constructed treatment capacity continues to ramp-up. This included achieving record throughput at our Elkview Operations Saturated Rock Fill in February of this year. With this ramp-up, we are on pace to achieve one of the primary objectives of the Plan: stabilizing and reducing the selenium trend in the Elk Valley. Currently, treatment is effectively removing selenium, and water quality monitoring shows that selenium levels are trending down downstream of treatment and stabilizing in the Elk River. We expect further reductions across the watershed and in the Koocanusa Reservoir as additional treatment capacity is completed.

Our anticipated 2024 investment in water treatment facilities, water management (source control, calcite management and tributary management) and the incremental measures required under the October 2020 Direction issued by Environment and Climate Change Canada (the Direction) of $150 to $250 million is unchanged from previously disclosed guidance. We continue to expect to meet our water treatment capacity targets by further increasing our constructed water treatment capacity to 150 million litres per day by the end of 2026. Key 2024 construction activities required to achieve this important milestone commenced in March of this year.

Final costs of implementing the Plan and other water quality initiatives will depend in part on the technologies applied, on regulatory developments and on the results of ongoing environmental monitoring and modelling. The timing of expenditures will depend on resolution of technical issues, permitting timelines and other factors. Certain cost estimates to date are based on limited engineering. Implementation of the Plan also requires additional permits. We expect that, in order to maintain water quality, some form of water treatment will continue for an indefinite period after mining operations end. The Plan contemplates ongoing monitoring to ensure that the water quality targets set out in the Plan are protective of the environment and human health, and provides for adjustments if warranted by monitoring results.

Ongoing monitoring, as well as our continued research into treatment technologies, could reveal unexpected environmental impacts, technical issues or advances associated with potential treatment technologies. This could substantially increase or decrease both capital and operating costs associated with water quality management or could materially affect our ability to permit mine life extensions in new mining areas.

OTHER OPERATING INCOME AND EXPENSES

Other operating expense, net of other income, was $188 million in the first quarter compared with $307 million of other operating income a year ago. The year-over-year change was primarily due to lower settlement pricing adjustments and gains recorded in the first quarter of 2023 for non-recurring items, including insurance proceeds and the NewRange and Quintette transactions. Significant items in the first quarter of 2024 were $83 million of negative settlement pricing adjustments and $35 million of share-based compensation costs, partly offset by $29 million of environmental gains primarily relating to an increase in the rate used to discount our decommissioning and restoration provisions for closed operations.

The table below outlines our outstanding receivable positions, which are valued using provisional prices at December 31, 2023 and March 31, 2024.

Finance expense includes the interest expense on our debt, on the QB2 advances from SMM/SC and on lease liabilities, letters of credit and standby fees, the interest components of our pension obligations and accretion on our decommissioning and restoration provisions, less any interest that we capitalize against our development projects. As anticipated, our finance expense increased significantly to $259 million in the first quarter compared to $61 million a year ago, primarily due to lower capitalized interest on QB2, as most of the assets were considered available for use as at December 31, 2023. We expect our quarterly finance expense to further increase in the second quarter, as the recently completed port and molybdenum plant at QB2 are expected to be considered available for use.

Non-operating expense, net of non-operating income, was $18 million in the first quarter compared with $27 million income in the same period last year. The most significant item in the quarter was a $25 million loss on the changes to the carrying value of the financial liability for the preferential dividend stream to ENAMI. The carrying value of this financial liability is most significantly affected by copper prices and the interest rate on the subordinated loans provided by us and SMM/SC to QBSA, which affect when QBSA repays the loans.

General and administration expenses of $66 million in the first quarter were similar to the same period last year.

Income Taxes

Provision for income and resource taxes was $309 million, or 42% of pre-tax profit. This is consistent with our previously disclosed range for 2024 of between 41% and 43%, excluding the impact of the sale of our steelmaking coal business and other corporate items. Our rate is higher than the Canadian statutory income tax rate of 27%, due primarily to resource taxes and higher statutory tax rates in some foreign jurisdictions.

We are subject to and pay income and resource taxes in all jurisdictions that we operate in. Canadian income taxes associated with our Canadian steelmaking coal and copper operations in 2022 of $625 million and final taxes associated with our 2023 earnings of $590 million were paid in February 2024, as expected.

Our effective tax rate is sensitive to a variety of factors, including the continuing ramp-up of QB2, certain corporate and finance expenses that are not deductible for resource tax purposes, the relative amount of operating margins and effective tax rates in the various jurisdictions in which we operate, and various other factors. We expect our 2024 effective tax rate to be significantly impacted by the sale of the steelmaking coal business to Glencore due to the accrual of capital gains tax arising on the sale transaction and upon presentation of the steelmaking coal earnings in discontinued operations, at the time that occurs.

FINANCIAL POSITION AND LIQUIDITY

Our financial position and liquidity remain strong. Our debt position, net debt2 and credit ratios are summarized in the table below.

Our liquidity was $7.1 billion as at April 24, 2024, including $1.6 billion of cash.

We maintain various committed and uncommitted credit facilities for liquidity and for the issuance of letters of credit. Our US$4.0 billion committed revolving credit facility is a sustainability-linked facility, which involves pricing adjustments that are aligned with our sustainability performance and strategy. Our sustainability performance over the term of the facility is measured by greenhouse gas (GHG) intensity, percentage of women in Teck's workforce, and safety. This facility does not contain an earnings- or cash flow-based financial covenant, a credit rating trigger or a general material adverse effect borrowing condition. The only financial covenant under our bank agreements is a requirement for our adjusted net debt to capitalization ratio not to exceed 60%. That ratio was 20% at March 31, 2024.

Antamina maintains a US$1.0 billion loan agreement that matures in July 2026. Our 22.5% share of the loan is US$225 million. The loan is non-recourse to us and the other Antamina owners.

We also have various other uncommitted credit facilities, standby letters of credit and surety bonds that primarily secure our reclamation obligations. The amounts issued under these facilities totalled approximately $4.1 billion at March 31, 2024. We may be required to post additional security in respect of reclamation at our sites in future periods as additional land is disturbed, regulatory requirements change or closure plans are updated.

Operating Cash Flow

Cash flow from operations in the first quarter was $42 million compared with $1.1 billion a year ago. The decrease in cash flow from operations was primarily due to income tax payments of $1.3 billion, which were expected, and related to our 2023 earnings and taxes on our 2022 earnings. Excluding income tax payments, our cash flow from operations in the first quarter was similar to a year ago.

During the first quarter, changes in working capital items resulted in a use of cash of $243 million partly due to a buildup of production inventories and a reduction in accounts payable. This compares with a use of cash of $654 million a year ago when there was an increase in accounts receivable as a result of timing of sales, particularly relating to steelmaking coal, and a reduction of accounts payable. Typically, in the first quarter of each year we have a use of cash through our working capital by way of reduction of accounts payables and other liabilities due to the payment of the seasonally larger fourth quarter NANA royalty at Red Dog, as well as other various annual expenses paid in the first quarter.

Investing Activities

Expenditures on property, plant and equipment were $783 million in the first quarter, including $414 million for the development of the QB2 project and $283 million of sustaining capital. The largest components of sustaining capital expenditures were $154 million at our steelmaking coal operations, $66 million at QB and $18 million at our Trail Operations.

Capitalized production stripping costs were $318 million in the first quarter compared with $310 million a year ago. The majority of this represents the advancement of pits for future production at our steelmaking coal operations.

The table below summarizes our year-to-date capital spending for 2024.

Financing Activities

Interest and finance fees paid in the first quarter, including amounts capitalized, totalled $106 million, which was $11 million higher than a year ago. Our higher financing costs are primarily related to interest payments for QB's Transelec S.A. lease.

In the first quarter, we paid $65 million in respect of our regular base quarterly dividend of $0.125 per share.

We also purchased approximately 1.4 million Class B subordinate voting shares for $80 million in the first quarter under our normal course issuer bid.

During the first quarter, we received $1.7 billion (US$1.3 billion) from NSC as part of the transaction in which they purchased 20% of EVR on January 3, 2024, as noted above.

FINANCIAL RISK MANAGEMENT

Sales of our products are denominated in U.S. dollars while a significant portion of our expenses and capital expenditures are incurred in local currencies, particularly the Canadian dollar and the Chilean peso. Foreign exchange fluctuations can have a significant effect on our operating margins, unless such fluctuations are offset by related changes to commodity prices.

Our U.S. dollar denominated debt is subject to revaluation based on changes in the Canadian/U.S. dollar exchange rate. As at March 31, 2024, approximately $2.0 billion of our U.S. dollar denominated debt is designated as a hedge against our foreign operations that have a U.S. dollar functional currency. As a result, any foreign exchange gains or losses arising on that amount of our U.S. dollar debt are recorded in other comprehensive income, with the remainder being charged to profit.

Commodity markets are volatile. Prices can change rapidly and customers can alter shipment plans. This can have a substantial effect on our business and financial results. Continued uncertainty in global markets arising from the macroeconomic outlook and government policy changes, including tariffs and the potential for trade disputes, may have a significant positive or negative effect on the prices of the various products we produce.

We remain confident in the longer-term outlook for our major commodities; however, ongoing uncertainty related to global economic growth, current geopolitical uncertainty, and the potential impact of monetary policy aimed at curtailing inflation in various jurisdictions, may have an impact on demand and prices for our commodities, on our suppliers and employees, and on global financial markets in the future, which could be material.

Commodity Prices and Sensitivities

Commodity prices are a key driver of our profit and cash flows. On the supply side, the depleting nature of ore reserves, difficulties in finding new orebodies, the permitting processes and the availability of skilled resources to develop projects, as well as infrastructure constraints, political risk and significant cost inflation, may continue to have a moderating effect on the growth in future production for the industry as a whole.

The sensitivity of our annualized profit (loss) attributable to shareholders and EBITDA5 to changes in the Canadian/U.S. dollar exchange rate and commodity prices, before pricing adjustments, based on our current balance sheet, our 2024 mid-range production estimates, current commodity prices and a Canadian/U.S. dollar exchange rate of $1.30, is as follows.

Notes:

FINANCIAL INSTRUMENTS AND DERIVATIVES

We hold a number of financial instruments and derivatives that are recorded on our balance sheet at fair value, with gains and losses in each period included in other comprehensive income and profit for the period, as appropriate. The most significant of these instruments are marketable securities and metal-related forward contracts, including those embedded in our silver and gold streaming agreements, QB2 variable consideration to IMSA, and settlements receivable and payable. Some of our gains and losses on metal-related financial instruments are affected by smelter price participation and are taken into account in determining royalties and other expenses. All are subject to varying rates of taxation depending on their nature and jurisdiction.

GUIDANCE

Our guidance for 2024 is outlined in the following tables, and is unchanged from our previously disclosed guidance. The guidance ranges below reflect our operating plans, which include known risks and uncertainties. Events such as extreme weather, unplanned operational shutdowns and other disruptions could impact actual results beyond these estimates. Our unit costs are calculated based on production volumes and any variances from estimated production ranges will impact unit costs.

Annual 2024 guidance and three-year production guidance has been provided for our steelmaking coal business. The guidance is on a 100% basis and reflects the exchange of minority interests by NSC of 2.5% in Elkview Operations and by POSCO of 2.5% in Elkview Operations and 20% in the Greenhills joint venture, as previously described. Therefore, our reported production and sales volumes increased from 80% to 100% for Greenhills effective January 3, 2024. Our reported production and sales volumes for Elkview Operations will continue to be reported on a 100% basis, consistent with our past reported presentation.

Effective from January 3, 2024, we include 100% of production and sales from the EVR operations in our production and sales volumes, even though we own 77% of EVR, because we consolidate 100% of EVR results in our financial statements. Our revenue, gross profit and EBITDA1 is on a 100% basis, and includes the fully consolidated results of EVR. Our profit (loss) attributable to shareholders includes our 77% ownership of EVR’s results, as 23% of EVR’s results are attributable to non-controlling interests which includes NSC’s (20%) and POSCO’s (3%) ownership of EVR.

We remain highly focused on managing our controllable operating expenditures. While our underlying key mining drivers such as strip ratios and haul distances remain relatively stable, inflationary pressures on key input costs, including the cost of certain key supplies and mining equipment, labour and contractors, and changing diesel prices, are expected to persist through 2024 as reflected in our annual capital expenditure, capitalized stripping and unit cost guidance.

Note:

Production Guidance

The table below shows our share of production of our principal products for 2023, our guidance for production for 2024 and for the following three years.

Notes:

Sales Guidance

The table below shows our sales for the last quarter and our sales guidance for the next quarter for selected primary products.

Note:

Unit Cost Guidance

The table below shows our unit costs for selected products 2023 and our unit cost guidance for selected principal products in 2024.

Notes:

Capital Expenditure Guidance

The table below shows our capital expenditures for 2023 and our capital expenditure guidance for 2024.

Notes:

Capital Expenditure Guidance – Capitalized Stripping

QUARTERLY PROFIT (LOSS) AND CASH FLOW

AREAS OF JUDGMENT AND CRITICAL ACCOUNTING ESTIMATES

In preparing our consolidated financial statements, we make judgments in applying our accounting policies. The judgments that have the most significant effect on the amounts recognized in our financial statements include the assessment of impairment indicators, the determination of assets held for sale and discontinued operations, the determination of the available for use date for property, plant and equipment, accounting for joint arrangements, streaming transactions and the accounting for income taxes. In addition, we make assumptions about the future in deriving estimates used in preparing our consolidated financial statements. Sources of estimation uncertainty include estimates used to determine the recoverable amounts of long-lived assets, recoverable reserves and resources, the provision for income taxes and the related deferred tax assets and liabilities, and the valuation of other assets and liabilities including decommissioning and restoration provisions. These areas of judgment and critical accounting estimates are consistent with those reported in our 2023 annual consolidated financial statements and Management's Discussion and Analysis, except as outlined below.

ADOPTION OF NEW ACCOUNTING STANDARDS AND ACCOUNTING DEVELOPMENTS

Amendments to IAS 1 – Presentation of Financial Statements

In October 2022, the IASB issued amendments to IAS 1, Presentation of Financial Statements titled Non-current Liabilities with Covenants. These amendments sought to improve the information that an entity provides when its right to defer settlement of a liability is subject to compliance with covenants within 12 months after the reporting period. These amendments to IAS 1 override and incorporate the previous amendments, Classification of Liabilities as Current or Non-current, issued in January 2020, which clarified that liabilities are classified as either current or non-current depending on the rights that exist at the end of the reporting period. Liabilities should be classified as non-current if a company has a substantive right to defer settlement for at least 12 months at the end of the reporting period. The amendments are effective for annual periods beginning on or after January 1, 2024 and adoption of these amendments did not have an effect on our financial statements.

OUTSTANDING SHARE DATA

As at April 24, 2024, there were 511.3 million Class B subordinate voting shares (Class B shares) and 7.6 million Class A common shares outstanding. In addition, there were approximately 11.1 million share options outstanding with exercise prices ranging between $5.34 and $63.11 per share. More information on these instruments and the terms of their conversion is set out in Note 26 of our 2023 audited consolidated financial statements.

INTERNAL CONTROL OVER FINANCIAL REPORTING

Our management is responsible for establishing and maintaining adequate internal control over financial reporting. Any system of internal control over financial reporting, no matter how well designed, has inherent limitations. Therefore, even those systems determined to be effective can provide only reasonable assurance with respect to financial statement preparation and presentation.

There have been no significant changes in our internal controls during the quarter ended March 31, 2024 that have materially affected, or are reasonably likely to materially affect, internal control over financial reporting.

REVENUE AND GROSS PROFIT

Our revenue and gross profit by business unit are summarized in the tables below.

COST OF SALES SUMMARY

Our cost of sales information by business unit is summarized in the tables below.

COST OF SALES SUMMARY, continued